Gov. Robert Bentley says he's on pace to save $1 billion

Agency functions can be consolidated further, governor says

Gov. Robert Bentley said he's on track to reach $1 billion in spending savings by the end of his term in 2014.

Dusty Compton | The Tuscaloosa News

By Dana BeyerleMontgomery Bureau Chief

Published: Saturday, November 24, 2012 at 3:30 a.m.

Last Modified: Friday, November 23, 2012 at 11:19 p.m.

MONTGOMERY | Gov. Robert Bentley said he's on track to reach $1 billion in spending savings by the end of his term in 2014.

“I feel we can reach that goal,” he said in a recent interview.

In July, Bentley said that since taking office, his administration had met two-thirds of the $1 billion savings goal with ­

$674 million in current and projected savings.

This week he updated his journey on a “road to a billion dollars in savings,” saying it could include consolidating agency functions such as public safety.

“We're continuing to look at agencies, looking at the Department of Public Safety, all agencies,” Bentley said. “There are a lot of things we're trying to streamline and save money.”

One proposed streamlining effort could involve consolidating some or all of the functions of 21 departments that have 32 law enforcement and investigative missions, according to Bentley's April 2012 government streamlining announcement.

Bentley assigned Department of Homeland Security Director Spencer Collier, a former state legislator and state trooper, to head the streamlining study.

Collier said in an email Tuesday that the Integrated State Law Enforcement Task Force is scheduled to present its plan to Bentley by Dec. 15. Collier said it will propose the most efficient delivery of state law enforcement services.

“The goal is to maximize existing capabilities and subsequently increase state law enforcement presence,” he said.

Collier said the task force coordinated some law enforcement functions over the Labor Day weekend.

“A similar plan is being initiated for the Thanksgiving holiday,” he said.

Collier said a new resource database allows agencies to learn of the availability of special equipment or training offered by other agencies.

“This has reduced redundancy in equipment purchasing and training,” he said.

Agency consolidations alone won't get Bentley to the $1 billion amount, but personnel reductions and other actions will. The State Employees Insurance Board has been discussing savings through higher out-of-pocket employee benefit costs and reductions.

Much of Bentley's initial savings came as a result of benefit changes that put more cost on employees. He also said in July that the state had 3,000 fewer employees than when he took office.

And recently Bentley announced a retirement incentive plan to urge eligible employees to retire. A significant number of retirements could save the state as much as $200 million, he said.

At the same time, Bentley has said he will support raises for teachers and support personnel, but he has not said how much of raise he favors. Each 1-percentage point raise costs the state $37 million.

“If revenue collections are adequate, Gov. Bentley has been supportive of raises for teachers and support personnel,” said spokesman Jeremy King. “We are in the process of developing budget recommendations, and we'll have more details as we submit those recommendations to the legislature.”

King said repaying the Alabama Trust Fund debt and teacher raises will not affect Bentley's goal of trying to save $1 billion.

For example, Bentley said in July that Alabama will realize $8.3 million in annual savings from refinancing state bonds and $93 million over the life of the bonds.

The Department of Corrections signed a new health care service contract of $224.7 million over three years.

Sen. Arthur Orr, R-Decatur, the chairman of the Senate Finance and Taxation General Fund Committee, said the contract will save $23.8 million over the next three years.

<p>MONTGOMERY | Gov. Robert Bentley said he's on track to reach $1 billion in spending savings by the end of his term in 2014.</p><p>“I feel we can reach that goal,” he said in a recent interview.</p><p>In July, Bentley said that since taking office, his administration had met two-thirds of the $1 billion savings goal with ­</p><p>$674 million in current and projected savings.</p><p>This week he updated his journey on a “road to a billion dollars in savings,” saying it could include consolidating agency functions such as public safety.</p><p>“We're continuing to look at agencies, looking at the Department of Public Safety, all agencies,” Bentley said. “There are a lot of things we're trying to streamline and save money.”</p><p>One proposed streamlining effort could involve consolidating some or all of the functions of 21 departments that have 32 law enforcement and investigative missions, according to Bentley's April 2012 government streamlining announcement.</p><p>Bentley assigned Department of Homeland Security Director Spencer Collier, a former state legislator and state trooper, to head the streamlining study.</p><p>Collier said in an email Tuesday that the Integrated State Law Enforcement Task Force is scheduled to present its plan to Bentley by Dec. 15. Collier said it will propose the most efficient delivery of state law enforcement services.</p><p>“The goal is to maximize existing capabilities and subsequently increase state law enforcement presence,” he said.</p><p>Collier said the task force coordinated some law enforcement functions over the Labor Day weekend. </p><p>“A similar plan is being initiated for the Thanksgiving holiday,” he said.</p><p>Collier said a new resource database allows agencies to learn of the availability of special equipment or training offered by other agencies. </p><p>“This has reduced redundancy in equipment purchasing and training,” he said.</p><p>Agency consolidations alone won't get Bentley to the $1 billion amount, but personnel reductions and other actions will. The State Employees Insurance Board has been discussing savings through higher out-of-pocket employee benefit costs and reductions.</p><p>Much of Bentley's initial savings came as a result of benefit changes that put more cost on employees. He also said in July that the state had 3,000 fewer employees than when he took office.</p><p>And recently Bentley announced a retirement incentive plan to urge eligible employees to retire. A significant number of retirements could save the state as much as $200 million, he said.</p><p>At the same time, Bentley has said he will support raises for teachers and support personnel, but he has not said how much of raise he favors. Each 1-percentage point raise costs the state $37 million.</p><p>“If revenue collections are adequate, Gov. Bentley has been supportive of raises for teachers and support personnel,” said spokesman Jeremy King. “We are in the process of developing budget recommendations, and we'll have more details as we submit those recommendations to the legislature.”</p><p>King said repaying the Alabama Trust Fund debt and teacher raises will not affect Bentley's goal of trying to save $1 billion.</p><p>For example, Bentley said in July that Alabama will realize $8.3 million in annual savings from refinancing state bonds and $93 million over the life of the bonds.</p><p>The Department of Corrections signed a new health care service contract of $224.7 million over three years. </p><p>Sen. Arthur Orr, R-Decatur, the chairman of the Senate Finance and Taxation General Fund Committee, said the contract will save $23.8 million over the next three years.</p>